Some fear Mendoza-Madigan alliance will worsen state government dysfunction

Susana Mendoza’s election to state comptroller has
many concerned with regard to her affiliation with House Speaker Michael
Madigan (D-Chicago), how she will work with Gov. Bruce Rauner and how she will handle the
state’s bill payments.

Jim Nowlan -- a former state legislator, agency director
and aide to three governors – spoke to several Democratic Party insiders and speculated that a Mendoza-Madigan alliance may be awkward for Rauner.

“I am speculating that a comptroller of the party opposite
of Gov. Rauner might be interested in making Rauner look bad or put him in
an awkward position by virtue of the comptroller’s control over the paying of
bills in a context in which there are more bills than there is more revenue,”
Nowlan told the Sangamon Sun.

Mendoza once seconded a motion for Madigan to remain speaker of the House for
another term when she held Chicago's 1st District state House seat, and many have speculated that Madigan heavily sponsored Mendoza's comptroller bid.

Nowlan said that, based on this speculation, a Mendoza-Madigan alliance may initiate actions that are contrary to what Munger has been
doing.

“Certain bills are paid and other bills were not paid, and
they are done so for reasons, in the case of Munger, that were helpful to
Rauner, which is understandable because they are close allies – Rauner
appointed her – and conversely, I think, a Democratic comptroller who is close to the speaker…would maybe be more interested in taking actions that would put Rauner
in an awkward position,” Nowlan said. “Just the opposite of what Munger has done.”

Nowlan cogitated that Mendoza could start paying bills
without regard to Rauner’s priorities. Such a situation could lead to a
crisis.

“I’m just saying it’s not impossible for the comptroller to
create or suggest that she would create the equivalent of a crisis by putting
the state into a position where it could not pay a bill that it is imperative
the state pays,” Nowlan said. “In other words, in my example, a bond payment. If
the state defaulted on a bond payment, there would be great shouts of distress
from Wall Street and from bond holders.”

If the state fails to make a critical payment, it may force
Rauner and Madigan to sit down and compromise, Nowlan said. This may be
beneficial, as the state is still without a proper budget, and neither side
has budged on finding a solution.

“Clearly, Madigan will let hell freeze over before he cries
'uncle' to Rauner, and Rauner will apparently withhold any support for a budget,
absent some elements of his Turnaround Agenda,” Nowlan said. “The impasse
will continue unless something outside the world of Rauner and Madigan forces
an action. Whether this will happen from the comptroller’s actions or not is not
certain. I’m just speculating that something could transpire that would force
action.”

Nowlan said that if neither side conceded to the other,
the state may go without a budget until 2019, after the 2018 elections, which
would be detrimental to businesses and to education.

“Any business executive who went to his board and said he
plans to invest billions of dollars and generate thousands of jobs in Illinois
right now would be laughed out of the boardroom by his board members because
nobody knows what the future tax structure and rates are going to be and nobody
knows how effectively the state will address its pension obligation and the $13 billion
or so in unpaid bills,” Nowlan said. “I think the instability and uncertainty are
doing great damage to the state.”

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